LIC stands for Life Insurance Corporation of India, a publicly owned firm that provides life insurance services to policyholders. It offers a wide range of LIC policies with different purposes and benefits.
The tremendous services worked so well with its best LIC policy that from 212 branches, the organisation inaugurated 2048 more offices in the country. Truly, it has a great business expansion and is yet growing incredibly with health insurance, annuity-pension, term insurance, and group insurance plans.
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History of LIC
It was 1956 when the Indian Life Insurance Industry was nationalised with the rise of the LIC of India. By the side, the floors passed the Life Insurance Corporation of India Act along with the merging of 245. The set-up was established with Rs. 5 crores of the initial budget, and the industry was ready to bring evolution to the market.
Then, the configuration was done with 170 Insurance organisations, of which 154 were of Indian origin and 16 were international. Furthermore, 75 provident fund policies were also functioning in the sector. Due to this clubbing, the country’s only active life insurance agency was LIC of India from 1956 to 2000, with massive marketing strategies resulting in impressive outputs.
Gradually, the organisation faced liberalisation, where private insurance companies participated in bulk. This eventually gave birth to high demand in offers, and by 2009, LIC introduced new services to beat the heat of the competition. Amidst the growing competition, LIC policy status also showed incredible records of achieving the 1 crore milestone in 2015. Currently, this public sundance organisation holds 74.6 per cent of shares.
Objectives of Lic of India
Let us discuss the brilliant objectives of LIC of India briefly one by one:
- Dissemination of life insurance accessibility on a large scale and promoting it to the rural sections of society.
- Encourage the development of the socio-economic underprivileged population and assist them as a financial backbone with ample resources against any uncertainties in life such as the sudden death of the bread earner.
- Increase mobilising of finance by integrating insurance with savings with incredible benefits.
- A policyholder does not have to worry about capital while executing a business with adequate funding.
- Policyholders may get accessibility to be trustees in public insurance capacities, whether collectively or as an individual.
- Participate in availing progressive LIC premium policies planned to reform society’s social and economic conditions.
- Corporate employees are invited to give their best lifestyle by insured policies and rider services by the service providers.
- In fund investment, the basic obligation of the policy purchasers with guaranteed insights to safeguard the community overall and allocation of those funds at their most potential considering the priorities and obligations of the nation with impressive ROI.
- Engage the Corporate workers to the most potential capabilities in expanding the insured people’s interests by offering appealing services with credibility.
- Encourage the service providers and Corporate workers with active engagement and job satisfaction through decreasing the level of obligations and encouraging dedication and consistency towards achieving the final goal of the corporation.
Types of Plans Offered by LIC
A number of LIC policy details are majorly covered by just focusing on the main LIC policies we will discuss below. Of course, there are other inside categories under one policy that will have a brief explanation for a better understanding.
LIC Term Insurance Policy
The LIC Term Insurance Policy is a basic insurance plan to provide financial protection against any risk of life or related obligations to the policyholder. The best advantage of this LIC policy is that the premiums are at a very low cost, making it reasonable for all. There are riders that a customer may include in their term insurance plans as a coverage expansion. Besides this, the nominees, generally the policyholder’s family members, get financial security in case of the sudden death of the policyholder trustable. Depending on the insurance provider, the perks of availing survival benefits may also be availed.
A few famous term insurance plans offered by LIC of India are Tech Term Insurance Plan and Jeevan Amar Plan. Under this, the premium rates do differ in both categories. In addition, smokers, non-smokers and females will be treated under various conditions. There is also the flexible advantage of adding riders that can increase the capabilities of your insurance plan for tenure. Interestingly, the policyholder can benefit from receiving their total sum at a 10 per cent hike from their 6th to their 15th policy year.
LIC Policy Endowment Plan
The LIC Policy Endowment Plan deals with the financial support provided to the insurer with the decided coverage and saving benefits. In case of death, the nominee will pay the perks when the plan is active. The nominee will avail of the maturity advantages if the plan has hit maturity. Here, the potential benefit is the guarantee that is its speciality.
In this type of LIC policy status, the Jeevan Lakshya Plan is the most popular plan chosen by insurers. Also, in the participating plan, a bonus might get added that will be granted to the nominee at the decided time.
LIC Policy Money-Back Plan
Another incredible, or we can say best, LIC policy is that the assured sum of the amount is given to the policyholder/nominee in instalments. This will occur throughout the period of agreed tenure. That means the policyholder does not have to wait until maturity hits. This LIC Policy detail is such that it pays the pre-decided instalments at the agreed intervals while the tenure is active for the holder. And at maturity, the remaining amount with the bonus secured will be granted cumulatively.
Considering the death case, the lump sum amount will be in the hands of the nominee irrespective of the riders added to the money-back plan. Namely, the LIC Jeevan Shiromani Plan and LIC’s Jeevan Umang Plan are considered the most fruitful plans under this category.
Unit Linked Insurance Plans
This LIC Policy status can be understood as a stand-alone insurance plan in which unit linkage is offered, combining other policies as a rider, for example: Linked Accidental Death Rider. In this LIC policy type, the availability of funds counts to 4, considering a premium investment.
Some of the most popular Unit Linked Insurance Plans actively offering different advantages to the policyholders are LIC New Endowment Plus Plan, LIC SIP Plan and Child Plan. Under these, the investment premium times up to 4 times and also have liberty in free switching between funds.
Pension plans
LIC Plan for older people will give you relief as the agency covers financial risks for all ages. Here, the Pension Plan is offered to the retirement-focused plan, which is offered to build a retirement backup for an individual till their lifetime. This is categorised into two types: immediate annuity plan and deferred annuity plan.
The best LIC policy under this is the Jeevan Shanti Plan, where a senior citizen policyholder can choose annuity receiving based on immediacy or deferred. They can also flexibly select their annuity plan per their preferences.
LIC Branch Office Contact Info
LIC of India’s headquarters is based in Mumbai, the finance capital of India. Though LIC of India settles multiple branch offices in different cities, one may refer to the contact details of the head branch, which is 022 6827 6827.
End Thought
Overall, just like the LIC of India provides coverage under various plans and policies, we have also covered the information with a simple and easy understanding. Starting from the major policy plans to the plans you may look for under the given majors; everything is provided in a single space. Hopefully, the other related queries have been resolved. If you are considering expanding your current LIC policy coverage or have to buy one, you must consider the information for making the right decision for you and your close ones.
Frequently Asked Questions (FAQs)
When was Lic established?
In 1956, the LIC of India was established with public ownership that is still operational and is competing with private organizations in the insurance sector impressively.
Who is the chairman of LIC?
M R Kumar is the chairman of the Life Insurance Corporation of India (LIC).
How can I see my LIC policy details?
Log in to the official portal of LIC and get to the “View Enrolled Policies” option that will redirect the page showing the LIC policy details and maturity tenure.
What is the best plan for LIC?
Term Insurance and Endowment Plans are currently the best LIC policy, with segregated benefits under defined categories.
How can I get LIC maturity?
The LIC branch sends the maturity claim two months before maturity. So, the policyholder can claim the same by submitting the discharge LIC policy receipt under Form 3825 before a month of the claim.
Is LIC a Government company?
Yes, the LIC of India is managed and monitored by the government of India and is a public insurance company.
How much is the sum assured by LIC of India?
There are a set of LIC policies where the purchaser selects the sum they want to avail at maturity with additional benefits if selected.
